For Atwell Suites hotels, what is the purpose of the System Fund operated by the Company?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company operates a System Fund (the "Fund") to collect and administer cash assessments from hotel owners for specified purposes of use including marketing, reservations, certain hotel services and the Group's loyalty program, IHG One Rewards. The Fund also benefits from certain proceeds from the sale of loyalty points under third-party co-branding arrangements and the sale of points directly to members and other third parties. The Fund is not managed to generate a surplus or deficit for the Company over the longer term but is managed for the benefit of the IHG System (hotels/rooms operating under franchise and management agreements together with IHG owned, leased and managed hotels/rooms, globally) with the objective of driving revenues for the hotels in the IHG System.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the Company operates a System Fund to collect cash assessments from hotel owners. These funds are earmarked for specific uses, including marketing, reservations, certain hotel services, and the IHG One Rewards loyalty program. The System Fund also receives proceeds from loyalty point sales through third-party co-branding arrangements and direct sales to members.
The primary objective of the System Fund is to benefit the entire IHG System, which includes hotels and rooms operating under franchise and management agreements, as well as IHG-owned, leased, and managed hotels globally. The fund aims to drive revenues for all hotels within the IHG System.
It is important to note that the System Fund is not managed to generate a surplus or deficit for the Company in the long term. Instead, it is managed to support the IHG System as a whole, ensuring that the collective interests of all hotels within the system are prioritized to boost overall revenue generation.